By Terry Savage on March 12, 2023 | Financial Planning / Retirement

Hi Terry. I am retiring in June 2023 (age 65-1/2) my husband retires on may 1, 2023 (age 66-1/2)

I have a 403b worth about $25k. I also have a Roth IRA.

We will not have any earned income in retirement

should I take the remaining contribution I am allowed for 2022 ($3600) and also for 2023 now from the 403b and move it the Roth before I retire?

My thinking is that I’m not thrilled with the performance of my 403B, and also our income will be significantly reduced for the remainder of the year so our tax base shouldn’t be too terribly affected.

Thank you so much for your expertise!

Terry Says

Well, first, you can only contribute to an IRA — roth or otherwise — if you have earned income in that year. So I would definitely make the 2022 contribution and get the 2022 tax deduction. That means the government is paying for part of your contribution! Do it before April 18th when your tax return is due.

But I have another question. Have you made an overall financial plan for retirement? Are you planning to live only on your Social Security? Have you thought about delaying one or the other’s SS benefits to get a higher check.
Try using the calculator at www.MaximizemySocialSecurity.com — before you make a big mistake.

And although it may seem expensive, maybe a session or two with an overall financial planner — not a salesperson! — would help you gain perspective. Consider this link.

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